UNITED STATES DISTRICT COURT DISTRICT OF KANSAS TRANSCRIPT OF SENTENCING HEARING BEFORE THE HONORABLE CARLOS MURGUIA, UNITED STATES DISTRICT JUDGE.

Transcription

1 0 UNITED STATES OF AMERICA, Plaintiff, v. ANTHONY RENFROW, Defendant.... APPEARANCES: For the Plaintiff: For the Defendant: Court Reporter: UNITED STATES DISTRICT COURT DISTRICT OF KANSAS Docket No. -0-CM Kansas City, Kansas Date: /0/ TRANSCRIPT OF SENTENCING HEARING BEFORE THE HONORABLE CARLOS MURGUIA, UNITED STATES DISTRICT JUDGE. Scott Rask Asst. US Attorney 0 US Courthouse 00 State Avenue Kansas City, KS 0 Tom Bartee Asst. Federal Public Defender US Courthouse 00 State Avenue Kansas City, KS 0 Nancy Moroney Wiss, CSR, RMR, FCRR Official Court Reporter US Courthouse 00 State Avenue Kansas City, KS 0 Proceedings recorded by machine shorthand, transcript produced by computer-aided transcription.

2 0 THE COURT: Let the record show we're here regarding Case Number -0. It's a case entitled United States of America versus Anthony Renfrow. The parties please enter their appearance. MR. RASK: May it please the court, United States appears by Scott Rask. MR. BARTEE: May it please the court, Mr. Renfrow appears in person and by and through counsel Tom Bartee. THE COURT: Mr. Bartee, if you and Mr. Renfrow will please approach the podium. Mr. Renfrow, we're here for your sentencing hearing. Since you may be asked to make some statements to the court, I am going to swear you in to tell the truth, so if you'll please raise your right hand. (Defendant sworn.) THE DEFENDANT: I do. THE COURT: Thank you. You can put your hand down. Mr. Renfrow, if you recall, you appeared in court on May st of this year, and at that time, pursuant to a Rule C C plea agreement, you pled guilty to Count, which charged you with conspiracy to commit wire fraud and engage in monetary transactions greater than $0,000, and that was in violation of United States Code Sections and, Class C

3 0 felony. At the time of your plea, the court informed you that prior to you being sentenced, a presentence investigation report would be completed. I would let you know that I have received the report, I have reviewed it, and the court is ready to proceed with your sentencing. In regards to the presentence investigation report, Mr. Bartee, have you had an opportunity to review the report with Mr. Renfrow? MR. BARTEE: Yes, Your Honor. THE COURT: And during your review, did you inform him of the contents of the report? MR. BARTEE: Yes, Your Honor. THE COURT: Did you also inform him of the possible sentencing outcomes or sentencing consequences that could take place based on the information in the report? MR. BARTEE: Yes, Your Honor. THE COURT: Mr. Renfrow, I asked your attorney whether or not he had reviewed the report with you, and he said he had. Is that correct? THE DEFENDANT: Yes. THE COURT: And I asked him whether or not he had informed you of the contents of the report, and he said he had done that as well. Is that correct? THE DEFENDANT: I read the report, yes.

4 0 THE COURT: But I asked you whether or not Mr. Bartee had gone over the report with you, and informed you of what was contained in the report? THE DEFENDANT: Yes. THE COURT: I also asked him whether or not he had informed you of the possible sentencing outcomes or sentencing consequences that could take place based on the information in the report, and again, he mentioned he had done so. Is that correct? THE DEFENDANT: If we're talking about what I agreed to. So, anything other than that, no. THE COURT: Yeah, that's not what I'm asking, so I'm going to ask if you'll listen to what I'm saying. THE DEFENDANT: I did hear what you were saying, and that is my answer. I did not go over every bit of what could or couldn't happen or what sentence I could get. I agreed on what we agreed on. MR. BARTEE: And Your Honor, I've told Mr. Renfrow that if the court does not accept the C C plea agreement, that we would then be allowed to withdraw the plea -- withdraw the plea. THE COURT: And that's more specific about some of the outcomes or consequences that could take place. So, in regards to that, did Mr. Bartee go over

5 0 that with you? THE DEFENDANT: Yes. THE COURT: Okay. Mr. Rask, in regards to the presentence investigation report, have you had an opportunity to review the report? MR. RASK: Yes, Your Honor. THE COURT: And after review, are there any challenges and/or objections to the report by the government? MR. RASK: No, Your Honor. THE COURT: Is the government moving for the additional one level adjustment for acceptance of responsibility? MR. RASK: If I could have just a moment, Your Honor. Yes, Your Honor. THE COURT: So granted. I know there were some objections that were filed by the defendant, and they're set out in the addendum. I've reviewed the addendum as well as not only the objections but the government's response, as well as the probation officer's response, and then on its own, the court had actually reviewed it on its own. In regards to the defendant's objections, Mr. Bartee, any evidence and/or further argument regarding these objections? MR. BARTEE: No, Your Honor. I believe I

6 0 set out everything, and it's been placed in the back of the presentence report in Paragraph Numbers 0 through, and I don't have anything to add to that. THE COURT: Mr. Rask, anything in regards to the defendant's objection? MR. RASK: Your Honor, I don't believe any of those objections relate to the calculation of the -- excuse me -- applicable guidelines range. I have nothing -- excuse me -- nothing further to add than what is contained in the presentence report as far as our response to those objections. THE COURT: Anything else in regards to that, Mr. Bartee? MR. BARTEE: No, Your Honor. THE COURT: Again, Mr. Renfrow, Mr. Bartee filed an objection that set out a number of objections regarding the presentence investigation report, and identified eight paragraphs in the presentence report he was objecting to on your behalf. The court's reviewed those paragraphs, and after review, the court would find that none of those eight paragraphs are going to affect the guideline calculations in your case. Because the objection to the content of this -- these paragraphs has no impact on the guideline calculation, the court determines that a ruling on the issue is unnecessary

7 0 under Rule I B. Therefore, the matter will not affect the sentence, and the court will not consider it in sentencing. Any other objections or challenges on behalf of the defendant at this time to the presentence investigation report? MR. BARTEE: No, Your Honor. THE COURT: At this time the court will make the following findings. Court is first going to find that the presentence investigation report should be sealed, should be made part of the record, be made available for purposes of appeal, if any, in the future. The court would also find at this time that under the sentencing guidelines, the total offense level would be a total offense level of, and with a criminal history category of two, that under the guidelines, the imprisonment range would be to months. Any objection to those findings at this time by the government? MR. RASK: No, Your Honor. THE COURT: By defendant? MR. BARTEE: No, Your Honor. THE COURT: The court is ready to announce its proposed findings of fact and tentative sentence. Prior to doing so, I'm going to ask counsel to make any statements or arguments they care to make in regards to

8 0 the sentence. I recognize that there was an C C plea agreement entered into. One of the court -- one of the things the court does, Mr. Renfrow, not just in your case, but every case, is ask the parties, which would be counsel, yourself, why the court should consider imposing a sentence that's outside the guideline range which I've just mentioned here on the record. So, I would be interested in hearing from counsel as to why the recommended imprisonment range should be the sentence in this case and not the guideline range. I also would mention that there were a number of letters written to the court regarding your sentence which the court has also reviewed. Mr. Bartee, on behalf of Mr. Renfrow, are there any comments, statements, or arguments you care to make regarding the sentence? MR. BARTEE: Your Honor, the parties reached this agreement after careful review of the merits of the case. As the court will recall, the defense had filed a motion to dismiss. While we understood the basis for the court's denying of that motion, we felt that it was a strong motion and had significant merit, and I think that in reaching this plea agreement, the parties took into consideration the possibility that that might have been successful on appeal. And so, I see the plea agreement is basically a compromise between the defense

9 0 and prosecution to reach an agreement that both parties could live with, recognizing that there were some interesting legal issues in the case. That's all, Your Honor. THE COURT: Mr. Renfrow, is there anything that you want to say on your behalf, or is there any evidence you want to offer in mitigation, which means in lessening of your sentence? THE DEFENDANT: Yeah, let me tell you something. I agree with him about the appeal, and we should have done it, and it wasn't done. Okay? But besides that, I argued about the amount on this case, 'cause over close to $00,000 that had absolutely nothing to do about this case, prosecution couldn't prove that, couldn't defend it. I had the people willing to come in this court and talk to you and tell you had nothing to do with Daily. So, I don't care if it doesn't make a difference to you and the guidelines. It makes a difference to me in what people are thinking, okay? My co-defendant -- all right, let me just say this. I need to say this 'cause I need it to be written out -- collected over $00,000 every month in doing this; did not send the money to me, but kept it in his own pocket. He's been -- moved to California, and he's been able to walk off with absolutely nothing, which I

10 0 0 don't understand, 'cause you know, I never came to Kansas. I don't know Kansas people. I don't know the people that put the money in his pocket. But it's all coming on me, even though he walked away with all the money. So, I needed to say that part, 'cause I want everybody to understand what really happened in here, and the fact that I didn't know Bill Fox, only met him one time before we came here, and everything I dealt with had to do with Holton Buggs, has nothing to do with Bill Fox, Kansas, or any of these people. Now, I did this deal 'cause I've been dealing with this for ten years. I'm tired of dealing with it, which I am. And on the fact of the letters that you received, people talking about what I do with the dinar and any other currency, I've been doing it for five years. If it was illegal, immoral or something was wrong, the FBI, Homeland Security, CIA, everybody else that I mentioned would have came and told me so, would have came and already arrested me, brought charges against me or anything else. So, just because some people sent some letters that don't have a clue what's really going on in the financial world doesn't mean I'm doing anything wrong. So... THE COURT: Anything else? THE DEFENDANT: No.

11 0 THE COURT: Mr. Rask? MR. RASK: Judge, as the -- excuse me -- as the court is aware, the underlying facts regarding this case are more dated than most cases that come before the court, and that was part of the reason for the basis of the motion to dismiss that was litigated in this case. In no way or respect does the United States think that the evidence was insufficient to have taken this case to trial, as outlined in the factual basis of the plea agreement. However, a lot of the evidence and testimony that would have -- excuse me -- that would have been presented in this case comes from individuals who were involved in this scheme from a number of years ago, and so, memories being what they can be, there would have been some obstacles or difficulties with respect to presenting all of the evidence. And so, from that standpoint, there was some compromise by the United States with -- with reaching this proposed resolution that you have before you in this C C agreement. So, I think that is a -- a valid reason to consider in granting, in essence, the variance that the parties are asking the court to grant. And then the other aspect of this is the way in which negotiations occur between parties as far as trying to reach a resolution that -- that both sides are essentially able to -- to accept and

12 0 agree to. And so, we would just ask that the court accept the resolution by the parties. As the court knows, this includes a forfeiture allegation. It also includes restitution amounts for the various victims that -- that were involved in this scheme. And so, as moneys are paid by the defendant or as assets are obtained by the United States Government to satisfy those restitution amounts, then that will hopefully be done over the -- the coming months and years. And so, I think that part of this case should also be considered in accepting this overall resolution that the parties agreed to. I'm happy to answer any specific questions that the court may have. THE COURT: Thank you. Anything else, Mr. Bartee? MR. BARTEE: No, Your Honor. THE COURT: Give me one moment please. (Whereupon court took a recess. Proceedings then continued as follows:) THE COURT: Anything else? MR. RASK: Judge, yes, I'm sorry. I wanted to respond or at least expound upon something that the defendant stated regarding the co-defendant, Mr. Fox. He did plead guilty to the same charge that the defendant pled. He was granted under Rule the

13 0 opportunity to plead guilty in the Southern District of California -- yeah, Southern District of California where he lives. His sentencing has not yet transpired. It was scheduled for December th, and just this last week, it got moved until March th. I've not had an opportunity to speak with the AUSA out there, so I don't know why it was continued for that -- for three months, but it's not as if he has gotten off or that there's not punishment that he will face. I don't know what may happen at that sentencing hearing. Just as in any other type of case, he did not enter a C C plea agreement. So, I just wanted the court to be aware of that information. THE COURT: Anything else, Mr. Bartee? MR. BARTEE: No, Your Honor. THE COURT: Court is ready to announce its proposed findings of fact and tentative sentence. Court is required pursuant to United States Code Section A to impose a sentence that is sufficient but not greater than necessary to comply with the purposes of sentencing identified in United States Code Section A. In determining the particular sentence to be imposed, the court has considered the United States Sentencing Guidelines, which promote uniformity in sentencing and assist the court in

14 0 determining an appropriate sentence by weighing the basic nature of the offense as well as aggravating and mitigating factors. The court notes the parties have entered into a plea agreement pursuant to Rule C C of the Federal Rules of Criminal Procedure. The court has considered the plea agreement, statements of the parties, and the presentence investigation report. After reviewing the presentence report, the court finds that the sentencing guideline range of to months is correctly calculated based on a total offense level of and criminal history category of two. The court has also considered the nature and circumstances of the offense and defendant's history and characteristics. This offense involves defendant commencing a fraudulent scheme known as DailyPlus.com in the spring of 0. Shortly thereafter, defendant recruited his co-defendant, William Fox, a primary recruiter and promoter of the web site DailyPlus.com. Defendant also recruited a second person from Houston, Texas to promote the scheme. The web site advised, quote, investors, end quote, that they could invest money and expect a return of percent per day or a total of 0 percent over a ten-day period by visiting the web site and clicking on advertiser's web sites for a certain period of time. At least investor victims

15 0 were identified through the investigation. The total monetary loss amount of the victims totals over $. million. After considering the above factors and the advisory sentencing guidelines -- as I mentioned before, Mr. Renfrow, at your plea hearing, the court was going to wait 'til I reviewed the presentence investigation report before I decided whether or not to accept the plea agreement, and so, that's now over time what I've been able to review. And in regards to that, as you heard me say, the guideline range, the recommended sentence is outside that guideline range, and my understanding is that the parties seek the binding plea agreement because it would bring certainty to the sentencing process, and assures defendant and the government they will benefit from the bargain they have struck, as well as that the parties believe that the interests of justice are served by the sentence, thereby assuring the sentence is consistent with the sentencing factors of United States Code Section A. And in that regard, again, as you said at your plea agreement, as set out in the factual basis, it's clear that you were involved in this scheme. You pled to the conspiracy charge. It's also clear that there were hundreds of victims that were involved, and that the victims did, in fact, sustain serious significant

16 0 losses, and that's in your plea agreement. And again, what's clear from your plea agreement is that you were involved in that. In regards to your sentence -- part of it is that, you know, the court does see a number of individuals that come with different types of cases. Every case is decided on its own merits, on its own defendants. They come with different backgrounds and different personalities. I would say as part of this, you do appear to have an interesting perspective on things that take place that you're involved in. In regards to your sentence, the court is going to find for the reasons mentioned here in the courtroom by both Mr. Bartee and Mr. Rask that there was serious consideration and thought given to the case as it progressed, and that based on that review of the case, that there were identified several potential issues that could affect the disposition of the case. There was a motion to dismiss filed. Again, after review by both the government and defendant, there was discussions that led to in the end what the parties presented to the court as a resolution of this case by the plea agreement. The court would find at this time that a sentence outside the guideline range is warranted based on that. Court is going to find that a variance sentence should be imposed as it's recommended in the

17 0 C C plea agreement. The court does at this time accept the plea agreement recommendation and find that your term of imprisonment should be a term of imprisonment of months and one day, and that's to be followed by a three-year term of supervised release. The court believes that such a sentence is sufficient but not greater than necessary to reflect the seriousness of the offense, to promote respect for the law, and provide just punishment for the offense. Further, the sentence should afford adequate deterrence to criminal contact -- conduct, and protect the public from further crimes of the defendant. The three-year term of supervised release which is in addition to your imprisonment sentence will allow you the opportunity to receive correctional treatment in an effective manner, and will assist with community re-integration. In regards to that three-year term of supervised release, there are a number of conditions that you're expected to follow. I will let you know -- I'll mention some of them now, but in regards to all those conditions, you'll need to follow each and every one of those. I would let you know that if you fail to do so during those three years, that you would risk coming back to court. The court would conduct a hearing, and if it's shown that you violated the conditions of your supervised release,

18 0 the court can take your supervised release away from you and order that you be sentenced to a term of imprisonment for those violations. Do you understand that? THE DEFENDANT: Yes. THE COURT: Defendant is ordered to pay a special assessment of $00 to the crime victim's fund. No fine is imposed due to the defendant owing restitution in this case. The court makes the following restitution findings based on a preponderance of the evidence and the presentence report. Number one, restitution totaling $,,0. is owed to the victims as outlined in Paragraph of the presentence report. Number two, pursuant to provisions of United States Code Sections A and, the court is required to order restitution in the full amount of victims' losses as determined by the court, and without consideration of the economic circumstances of the defendant. Number three, the court intends to waive interest on restitution. On August th,, the court signed and filed a final order of forfeiture and imposition of forfeiture judgment in this case in the amount of $,,000. The court does intend to impose mandatory and special conditions of supervision as set forth in Part D of the presentence report. Mandatory

19 0 conditions of drug testing and DNA collection are required by law. The drug testing condition is suspended based on the court's determination that the defendant poses a low risk of future substance abuse. Mr. Renfrow, you are prohibited by federal law from possessing or purchasing a firearm, destructive device, dangerous weapon or ammunition as a result of this conviction. Do you understand that? THE DEFENDANT: Yes. THE COURT: Prohibition against possessing or purchasing a destructive device or other dangerous weapon is warranted based upon officer safety. The nature of the offense and history outlined in the presentence report warrant the conditions for the search condition. Special financial conditions will aid the probation officer in collecting restitution. Do the parties want to be heard in regards to voluntary surrender? MR. BARTEE: Your Honor, Mr. Renfrow is requesting voluntary surrender. I would note for the court that he has a history of coming to court here, traveling here from California, and he did that again today. He's likely to serve his sentence in California, so that if he were denied voluntary surrender, he would have to be transported back to the state where he lives.

20 0 He has all ready met with US Probation in Sacramento to review bureau of prisons' facility procedures. And so, for those reasons, we would ask that he be granted voluntary surrender. We understand that the government has -- it will condition its acquiescence or approval in this regard on some -- on some conditions, and Mr. Rask can state those for the court, and I believe that Mr. Renfrow is amenable to those. THE COURT: Mr. Rask? MR. RASK: Yes, Your Honor. As the court mentioned, it has received letters regarding Mr. Renfrow and the potential sentence in this case. The United States Attorney's office has received numerous communications via , letter, telephone calls, and so forth with respect to Mr. Renfrow's current involvement with an Iraqi dinar -- what I will call scam. And as a condition of him being allowed to voluntary -- voluntarily surrender, we would ask that a condition of his release include that he have no involvement, no advocation, no participation whatsoever with the Iraqi dinar or any other sort of currency exchange activity, whether that be through internet communications, that could be as simply on a web site, whether it's internet facilitated conference calls, whether it's any sort of activity on Twitter or some

21 0 other form of social media. As long as essentially, the defendant withdraws himself completely from anything to do with the Iraqi dinar and currency exchange, the United States would not oppose voluntary surrender. THE COURT: Mr. Bartee? MR. BARTEE: Your Honor, that's what we anticipated would be the request, and it's -- that's agreeable with defense. THE COURT: Mr. Renfrow, the court has asked whether or not any party's going to make a request for you to voluntarily surrender. Mr. Bartee's done that on your behalf. He mentioned a number of things that went into that decision. The government does not have an objection to that as long as you abide by this condition, which I believe would be a modification of his bond at this time, very specifically set out a number of prohibitions involving your involvement with this other sounds like program or whatever you want to call it. THE DEFENDANT: Thank you. I appreciate that. THE COURT: I know other people would say it's a scheme to defraud people as well. THE DEFENDANT: But that's okay. The truth comes out, but go ahead. I appreciate that. Go ahead.

22 0 THE COURT: So -- so, the question to you is, did you understand what the government has now mentioned as the condition as to whether they will agree to this voluntary surrender? THE DEFENDANT: Yeah, nothing to do with the Iraqi dinar scheme or internet or Twitter or anything mentioned or the exchange. Okay. THE COURT: I would let you know, however that's set out as a condition of your bond, it will be set out as the government has proposed. If you, in fact, fail to abide by that prohibition or are involved in any way, in any manner, that what would happen is if that's relayed to the court, the court is going to remove the voluntary surrender, and order that you be placed into custody and start serving your imprisonment sentence. THE DEFENDANT: I understand. THE COURT: You understand that? THE DEFENDANT: Yep. THE COURT: Any objections to the court's proposed findings of fact and tentative sentence from the government? MR. RASK: No, Your Honor. THE COURT: From defendant? THE DEFENDANT: I had a question, though.

23 THE COURT: Why don't you talk to Mr. Bartee first. 0 (Defendant conferring with attorney off the record.) THE COURT: Anything else, Mr. Bartee? MR. BARTEE: No, Your Honor. THE COURT: Any objections to the court's proposed findings of fact and tentative sentence from defendant? MR. BARTEE: No, Your Honor. THE COURT: Mr. Bartee, do you know of any lawful reason at this time why the court should not impose a sentence? MR. BARTEE: I do not, Your Honor. THE COURT: Mr. Renfrow, the court determines that the presentence investigation report and the previously stated findings are accurate, and orders those findings to be incorporated in the following sentence. Pursuant to Sentencing Reform Act of, it's the judgment of the court the defendant, Anthony Renfrow, is hereby sentenced to the custody of bureau of prisons for a term of months and one day on Count. This term of imprisonment shall be followed by three years of supervised release. Within hours of release from the custody of bureau of prisons, defendant shall

24 0 report to the US Probation Office in the district in which he is released. While on supervised release, defendant shall not commit another federal, state, or local crime, shall comply with the standard conditions that have been adopted by this court, and the special and mandatory conditions of supervision as set forth in Part D of the presentence report. It is ordered defendant shall pay United States a special assessment of $00 to the crime victim's fund pursuant to United States Code Section 0. Payment of the assessment is due immediately, and may be satisfied while in the bureau of prisons' custody. No fine is imposed. Pursuant to United States Code Section A, defendant is ordered to pay restitution in the amount of $,,0. to the victims identified in the presentence report. Restitution is ordered joint and several with William Fox; that's Southern District of California Docket Number : CR 0-L-, and payments shall be made to the US District Court, US Courthouse, 00 State Avenue, Room, Kansas City, Kansas, 0. Restitution is due immediately, and shall satisfied in payments of not less than ten percent of the funds deposited each month into defendant's inmate trust fund account, and monthly installments of not less than five percent of his monthly gross household income over the

25 0 three years of supervised release to commence 0 days after his release from imprisonment. Interest on restitution is waived. A final order of forfeiture and imposition of forfeiture money judgment has previously been filed by the court. Both the government and defendant are advised as to their respective right to appeal this sentence and conviction. An appeal taken from this sentence is subject to United States Code Section, and subject to any waiver in the plea agreement in this case. Defendant is advised of your right to appeal the conviction and sentence, but only to the extent you've not waived that right in the plea agreement. You also can lose your right to appeal if you do not timely file a notice of appeal in the district court. Rule B of the Federal Rules of Appellate Procedure gives you days after the entry of judgment to file a notice of appeal. If you so request, the clerk of the court shall immediately prepare and file a notice of appeal on your behalf. If you're unable to pay the costs of an appeal, you have the right to apply for leave to appeal in forma pauperis, which means without having to pay a filing fee. At this time, voluntary surrender is granted with the condition that was mentioned here in the courtroom added to the other bond conditions you're presently under. Mr. Renfrow, is

26 0 there any reason for the court to believe you won't follow all those conditions? THE DEFENDANT: No, sir. THE COURT: Is there any reason for the court to believe that you won't appear on the date, time, and place that you're notified to appear to begin serving your term of imprisonment? THE DEFENDANT: No. THE COURT: Defendant shall report to the facility designated by the bureau of prisons as notified by the US Marshals. Anything else from the government? MR. RASK: Would move to dismiss Count, Your Honor. THE COURT: So ordered. Anything else from defendant? MR. BARTEE: No, Your Honor. THE COURT: If there's nothing else, this hearing's adjourned. Thank you. (Whereupon, court recessed proceedings.)

27 C E R T I F I C A T E 0 I, Nancy Moroney Wiss, a Certified Shorthand Reporter and the regularly appointed, qualified and acting official reporter of the United States District Court for the District of Kansas, do hereby certify that as such official reporter, I was present at and reported in machine shorthand the above and foregoing proceedings. I further certify that the foregoing transcript, consisting of typewritten pages, is a full, true, and correct reproduction of my shorthand notes as reflected by this transcript. SIGNED November 0,. S/ Nancy Moroney Wiss, CSR, CM, FCRR